HAF conversation in Tecumseh officially over as council votes to terminate deal

(CTV News file image)

The conversation of the Housing Accelerator Fund (HAF) in Tecumseh is officially over.

Council met Tuesday and received a communications letter from the Canada Mortgage and Housing Corporation (CMHC) to officially terminate their agreement on the HAF.

Council voted 4-3 in favour back in July 2025 to reject pre-zoning land for up to four units as-of-right - a requirement of receiving the remaining $3.2-million in federal grant funding.

CMHC stated in its letter that council had until January 30 to alter the plan and allow four units, or face termination of the deal. CMHC stated that the $1.09-million already advanced to the town will not need to be repaid.

It was stated during the meeting that of the $1.09-million that the town received, $440,000 of that has been spent on consulting time, purchasing software, and staff time. Of that $440,000, $230,000 alone was spent on HAF Initiative 1 which was the four units as-of-right.

Coun. Alicia Higgison says there’s concern over what this could mean for future taxpayers.

“I have been disappointed, this just further decides for us that the burden of what it’s going to cost for this town to grow is going to rest on our taxpayers more so than it needed to now, and needs to in the future.”

Mayor Gary McNamara says the remaining $3.2-million the town would’ve gotten from the HAF was going to be used for stormwater improvements in the Manning Road Secondary Plan Area.

“So really that money’s not there anymore, so obviously we have to go... two things that the municipality is going to have to do, number one, go to reserves to make up that $3.2-million, or debt for $3.2-million because we have to fulfill the requirements that we made with the developers and the county.”

McNamara says he was disappointed when the decision was made, and he’s still disappointed.

“It was dealt with a few months ago, and we need to move on. But, our ask to the federal government doesn’t end there. There’s other grants, there’s the Canada Build Program, there’s other programs that are coming forward as well, and we’re going to be very aggressive in making those applications to receive our fair share of certainly infrastructure money to help us advance our housing needs in the community.”

During the July 2025 meeting, Mayor McNamara, Higgison, and Coun. Brian Houston voted in favour of approving four units as-of-right.

The decision came following months of pushback from residents fearing how it could change the character of the town, among concerns of traffic and parking, flooding, and a strain on existing infrastructure such as water use and sanitary sewer capacity.